We have seen over the last few years the extreme pressure that the American healthcare system
has had on a large number of Americans. Insurance companies have been cracking down and
tightening their leashes around the necks of so many of us. An evil that lies among the American
healthcare system is one that has grown tenfold with COVID-19, and is starting to lay in more
not only to the American people but also their pocket books. I of course am speaking of the
American Pharmaceutical companies.
According to the American Society of Plumbing Engineers (ASPE), “Over the period from
January 2022 to January 2023, more than 4,200 drug products had price increases, of which 46
percent were larger than the rate of inflation. The average drug price increase over the course of
the period was 15.2 percent, which translates to $590 per drug product.” Drug prices in America
are on a continual rise, and the pharmaceutical companies are continuing to raise prices and
shutting out a large number of lower classes from receiving their proper medical care.
Within the United States the pharmaceutical companies have close to zero regulation on what
they want to set their prices at. This allows them free creative ability to move and shape the
market how they see fit. The only thing that has been done to put pressure on them has been
under President Joe Biden and his capping of the price of insulin at 35 dollars.
There are a number of reasons as to the causes of such little regulation of the pharmaceutical
industry, but the three main ones are: the formation of political iron triangles, the constant battle
to make a profit, and the hold they hold over a number of different patent laws. These three
things put together is the reason why this industry is a formidable force upon the American
political system and on the everyday American.
Let us examine the first pillar to their power: political iron triangles. If you are not familiar with
the term Iron triangle it is a term that refers to when a company or interest group has control of a
person working in the government and through them has control of bureaucracy and law making.
The pharmaceutical industry is an industry that has control of roughly two-thirds of congress
whether that be through supporting their campaigns financially or through lobbying efforts. They
have become fully entrenched in American bureaucracy, and is a large reason as to why they are
still so unregulated even today. They have complete freedom to run amuck over the American
consumers. The lax nature of their regulation also allows them to use practices that are harmful
or unsafe when it comes to the testing and development of new drugs within the consumer
market. This allows them to push out drugs at higher rates to continue to cushion profit margins
and have more money in their pockets.
The second pillar that holds up this industry is their constant drive to profit over all else. Prices
have remained high because corporate CEO’s are driven to the idea of making sure that they
continue to hold dominance over the market. The most profitable pharmaceutical company Pfizer
saw a seven percent increase over 2023 bringing in over 14 billion dollars over the
fourth quarter. Even with the hardships that have been facing the American economy we are still
seeing companies break record high profit margins across a number of industries, not just in the
pharmaceutical industry. It is hard to blame them for being driven by profit just because that is
the nature of the American capitalist society, but when it is still coming at the cost of the
American consumers who are struggling, and hurting then it is time we begin to call out these
companies for the hurt they are causing.
Finally, the last pillar that rounds out the trifecta that solidifies the liquid steel that is this industry
is the hold they have on US patent laws. A quick explanation of how US pharmaceutical patent
laws work, in simplistic terms it is the idea of when a company has a patent on a drug that means
only that company can manufacture and sell that drug. What does that do to the American
consumer? What it does is keep us locked in to prices for certain drugs. That connection with
American insurance companies leads to someone like me who only pays a co-pay of four dollars
for a medication that might be 15 dollars for someone else. There is an extreme price gouging
issue when it comes to medications that leads to so many Americans in lower class statuses
having to go without certain medications because they are locked behind patent pay walls.